SOUTH SAN FRANCISCO, Calif., Jan. 3, 2013 /PRNewswire/ -- NGM Biopharmaceuticals, Inc. announced today that it has signed a worldwide agreement with Janssen Pharmaceuticals, Inc. to discover and develop novel therapeutics for the potential treatment of Type 2 diabetes and other metabolic diseases.

NGM and Janssen will jointly conduct research on selected protein factors discovered by NGM using its diabetes discovery platform, with the goal of advancing drug candidates that mimic the potential glucoregulatory effects of bariatric surgery on diabetes patients. Janssen will receive an exclusive worldwide license to develop, manufacture and commercialize compounds resulting from the collaboration.

Under the terms of the agreement, NGM will receive an upfront payment and research support for activities conducted in collaboration with Janssen. In addition, NGM is eligible to receive payments upon the achievement of certain research, development, regulatory and commercial milestones, as well as royalties on worldwide product sales.

"NGM's commitment to drug discovery has resulted in a deep pipeline of novel targets that have a potentially profound effect on metabolic diseases," said Jin-Long Chen, Ph.D., founder, president and chief scientific officer of NGM. "We are pleased to be working with Janssen, who will bring world-class drug discovery and development expertise to the advancement of NGM's first-in-class therapies for the treatment of patients with diabetes."

About NGM Biopharmaceuticals, Inc.

Founded in 2008, NGM is a privately-held drug discovery company in South San Francisco, California committed to the identification and development of transformational biologics for diabetes, obesity and other cardio-metabolic diseases. The Company is focused on discovering the next generation of therapeutics that will fundamentally change the treatment paradigm for the growing population of diabetes and obesity patients worldwide. NGM has established collaborations with Daiichi Sankyo in the area of beta cell regeneration, and with JDRF to discover novel biologics for the treatment of Type 1 diabetes. For more information, please visit the company's website at www.ngmbio.com.